B.

Com (Part-II) Examination, 2010

(10+2+3 Patterns) (Faculty of Commerce)

ACCOUNTANCY AND BUSINESS STATISTICS

First Paper: Direct Taxes

OBJECTIVES PART- I
Time: One Hour Max. Marks: 40 Attempt all questions. Question No. 1 (i) to (x) are of 2 marks each. Question No. 2 (i) to (v) are of 4 marks each. 1. (i) (ii) (iii) Define direct tax. When is a company said to be resident in India? an employee has been provided by his employer (a sole trader) with a Running facility and

of motor car of 1.8 litre (c.c) for both officials and persons use. maintenance expenses of officials use and the the employer. What will be the Rs. 12,000 per (iv) month.

remuneration of driver are borne by

value of facility of car if the salary of employee is

Explain the situation where the income of self occupied house

property

can

be negative. (v) (vi) At what rate additional depreciation is allowed? A payment of Rs. 50,000 was made by an assessee to a person in a day in cash. head.

What amount is deductible from business and profession (vii) (viii) (ix) (x) What is a long term capital assets? How is income from winning of lottery grossed up. Taxable income of a firm is Rs. 1,20,00,000

What will be the rate of deduction of tax at source from the interest of debentures of a company during the financial year 2009-10. If these debentures are (i) Listed or (ii) unlisted?

2. (i) (ii)

How is the annual value of a let out house property calculated? In what type of business presumptive income can be ascertained and how it

will be ascertained?

(iii)

Ram purchased as asset of Rs. 70,000 as on 01.06.1976 and sold if for Rs. 60,000 1,00,000 Find the capital gain. the

and its market values oon 01.04.1981 was Rs. (iv)

Explain the income of demand dividend under Section 2 (22) (e) of

Income Tax Act. (v) Profit of a partnership firm is Rs. 3,00,000 after charging interest on capital

@ 20% of its capital of Rs. 5,00,000. How much remuneration firm to its partners if it is a business firm?

can be paid by this

DESCRIPTIVE PART- II
Time: Two Hour Section-A 3. Mr. Ajit is Asstt. Manager of a Taxtile of Jaipur, since 1985. He has submitted the following particulars of his income for the financial year 2008-09 (i) Net Salary of 81,000 after deduction of tax at source Rs. 5,000, contribution to Recognized Profident Fund Rs. 9,000 and rent of bungalow@ 5% of salary. (ii) Dearness Allowance Rs.1, 000 per moth (Rs. 200 p.m. enters into retirement benefits.) (iii) (iv) (v) (vi) Education allowance for two children at Rs. 150 p.m. per child. Commission on sales Rs. 10,000 Entertainment Allowance of Rs. 500 per month. Travelling Allowance for his official tours Rs. 18,000. Actual expenditure on tours amounted to Rs. 7,600 (vii) He resides in the bungalow of the company. Its fair rent is Rs.1 ,500 p.m.. A watchman and a cook have been provided by the company at the bungalow who are paid Rs. 400 p.m. each. (viii) He has given cloth worth Rs. 5,000 by his employer free of cost. (ix) He has been provided with a motor car of 1.6 litre (c.c) for his officials as well as personal use. The running and maintenance costs are borne by the company. (x) Employer's contribution to R.P.F. is Rs. 7,000 and the interest credited to this fund at 13% rate amounted to Rs. 16,250 Max. Marks: 60

(xi)

His employer paid in December, 2008 for his medical treatment in France Rs. 50,000, Rs. 15,000 for travelling in this connection and Rs. 20,000 for stay there.

Compute income from salaries for the assessment year 2009-10 assuming that his taxable income from other sources for this assessment year is Rs. 1,60,000. Assume also that the population of Jaipur city as per Census of 2001 is 26 lakhs. or Explain the provision of the Income Tax Act pertaining to the deduction of the following expenses. (i) (ii) (iii) (iv) Expenditure on scientific research. Capital expenditure for purchasing patent right. Expenditure on acquiring know-how Preliminary expenses.

Section -B 4. Shri Rohan has submitted the following particular of his incomes and expenses for the previous year 2008-09 Rs. (i) (ii) (iii) (iv) (v) (vi) (a) (b) (c) (d) Taxable income from salary Rent received from house property Income from business Profit from small scale industry established on 01.01.2001 Divident from foreign company Winning from lotterly (Net) Life insurance premium on policy of independent son Deposited in Public Provident Fund (P.P.F.) Purchases National Saving Certificate (N.S.C.) Life insurance premium on policy of dependent father 1,46,000 12,000 78,000 40,000 3,880 20,730 6,000 25,000 17,000 4,000

You are required to find out total taxable income and net tax liability of his assessee for the assessment year 2009-10. or

Explain the circumstances under which the income of other persons are included in the total of an assessee. Section-C 5. Following are particulars given by a H.U.F. in its return of income for the Assessment year 2009-10. You are required to compute the total income of the family and the net tax payable by the family. (i) Profit from business Rs. 8,50,000 after deduction of Rs. 60,000 paid to a member of the family for working as salesman and Rs. 2,80,000 paid to Karta for managing the affairs of the business. (ii) The family owns a house with a rental value of Rs. 40,000. The house is used for the residential purpose of the family. (iii) Long term capital gain Rs. 60,000 on sale of plot of land. This amount has been computed on the basis of Cost Inflation Index. (iv) Short term capital gain of Rs. 60,000 earned on sale of listed equity shares in December, 2008 Securities transaction tax of Rs. 2,000 has been paid on these transactions. (v) Long term capital gain of Rs. 40,000 on unlisted equity shares sold in July, 2008 and long term capital gains of Rs. 1,00,000 on listed shares sold in March, 2009 through a recognized stock exchange. The capital gain on these shares has been computed on the basis of Cost Inflation Index. (vi) Life insurance premium paid on Jeevan Dhara Annuity plan of the lives of two members of the family amount to Rs. 10,000 during the year. (vii) Interest on Government securities was received on 30.06.2008 Rs. 14,000

(viii) The family received a dividend of Rs. 13,425 from this company. (ix) Winning from House race Rs. 7,500.

or State liability to pay advance tax and the method of its computation.